Hey everybody...I have been researching house flipping for quite a while and would like to hear from those that are currently doing it. For you, what is the most difficult thing about flipping houses???

Thanks for your response!
S

The most difficult thing is finding the right contractor. If you don't have a reliable contractor it is very dificult to have a successful flip.

The biggest problem with flipping is just this. The investors IE the money man. Wants to make as much as they can on the flip. The problem is even after getting bids and agreeing to terms. There are always surprise problems that pop up. Problems equal delays and more money. The investor only sees the bottom line and how to keep it where they want it. They do this by leaning on their contractors. I am lucky. I am a general contrator. So I can handle anything myself.

As a contractor that has done flips. For myself and others. I can't afford delays. When I set aside a block of time to do a project, then I have to pull off, thats costs money. The investors don't care and don't want to hear it. when it's time to start work again..surprise .. surprise.. you can't get the guy back and he has your money now.

To avoid problems.

Hire a GC. They already have a fine tuned network of men that they use regularily. You have no clout in the construction trades and prolly never will. A GC that deligates out 200K work to his subs does.

Always get a demo price seperat from the contstruction cost. That way you can get all your DEMO work done. Bring in the GC and go over what needs to be done. Any hiddin issues will most likely have been discovered during the demo phase. The you can assure yourself a hard number to complete the project.

Don't change the plans in midstream.

expect to get killed on Ad-ons during the process.

Here's a question. We are on our second house. The first house was used as a methlab and we cleaned up everything. We did all the work ourselves with no contractors. The second house is ending up being a complete remodel as well - built in 1937 with only 4 circuits for the entire house (as an example). So, again, we are redoing electric water, furnace, etc - ourselves with no contractors. My question is using some labor and doing our own work, how much money are we really saving versus using a general contractor who maybe can buy supplies cheaper, or do the work quicker thereby saving interest payments??

On our first house we did most of the work ourselves as well. Even though we saved money on labor, it took us much much longer to complete the flip. In the long run, we would have saved money just letting someone else do the renovations quickly. By us taking so long, we paid extra interest as well as insurance. Bottom line, time = money. On our next one, we plan to sub out most of the work, and while that work is going on, do other things like the landscaping, etc.

Mblick. You are realy only saving pennies. As a GC I cen get a complete HVAC system installed and warrented for 10 years for a 2000 SQFT home for ruffly 6,000.00. The minut a home owner I.E. a non licensed distributor installs a compresser/condensor. THERE is No warrentee on the product. You then open yourself up to liability. Any qualifyed GC that is familiar with flips can flip any house, size, shape or condition in less than 6 weeks. Example: I can have my HVAC, Plumber, Electrition, excavator, tree service on sight with in an hour of me making a phone call. Because of the amount of work I deligate.

If you purcased the flip house for 100K did all the work yourself. Invested 25K, then sold the house for 180K your gross profit is 55K. If you hire a GC they will only add approx 15% to their subcontractors. To use a GC your expenses may go to 40-45K. The project will be done in a timely manner. For the extra 15-20K you get all the warrenties, wich are priceless. Trying to GC a project, work your regular job, take care of your house, take care of the kids, have quality family time. The stress you avoid alone is worth hiring the GC.